2 Notes:

1) The article makes it sound like they are only talking about the UK
2) Very unlikely he is being truthful: You think that someone is going to say "oh, we're going to drop the price again in 9 months, and screw over sales till then"?

The X360 has the Slim/540 coming up mid next year, so I wouldn't be surprised if the price dropped slightly when it came out.

Price cut in June 2009 confirmed!

Yeah, the guy has no reason to admit to it if there is a price cut coming. And regardless, i think what will happen next is the Arcade model will be given a (20gb) harddrive instead of a price cut

Well, it's already almost as cheap as the PS2 (atleast here), so no wonder...

The 360 wont be here for many many years. I think they will do a price drop next year.

The arcade model should be scrapped. They should have put the 20 GB hard drive on that instead of taking it away completely.

Man, xbox360 for 250$ with hard drive that would be sweet.

The problem is that, regardless of system, it's not economically feasable to put a HDD on every system, and sell the said system and a decent price.

Hard drives have a minimum threshold of cost, due to components involved. Because of this, HDDs will always, regardless of size, cost console makers around $30-40 wholesale to produce the most basic hard drive....Whereas a much more robust hard drive (2x the size) may increase costs by 20-30%.

Peter Moore, in a recent interview (after his split with MS) confirmed the HDD costs' as being one of the key reasons the Xbox was canned so quickly (along with the GPU woes). It's also one of the reasons the base Xbox never saw major price drops after it's massive cut in May 2002 from $300 to $200 (afterwards, the Xbox only dropped to $150, if you were lucky, over the next 5 years).

Microsoft will ALWAYS have a HDD-less system, because it cuts such a hefty price off of the system. It's also the reason that Nintendo doesn't have a 2.5" HDD on the Wii.

The *best* solution would be that Microsoft can/could include a basic 2-10GB flash drive with the systems, and improve them as technology warrants.

I hope next generation they all have HDD's

The US dollar has strengthened significantly against the Euro and the GBP over the last two months. Just be glad you aren't looking at a price increase.